On the Edge of Technology

Does Piracy Pay?

To say I was surprised would be putting it mildly – apparently you can watch full-length episodes of most anime series for free at various websites (according to my anime-addicted buddy). If any website tried to pull the same stunt with say, Disney’s content, you’ll have trouble finding the body after the lawyers are done.

Now, anime is mainstream media in Japan, and together with manga (its printed cousin) is a multi-billion dollar industry. Corporate Japan is not exactly known for altruism or incompetence – why on earth would they tolerate such blatant pilfering?

Perusing the startling variety of anime available online, I noticed that the majority had been translated, in some cases into as many as 5 languages. This translation was done for free by dedicated fans who superimpose their own subtitles onto the video, in what’s apparently a common practice known as “fan-subbing”. This allows the anime to reach a broad audience well beyond its home market, gaining legions of new fans, of which a small subset might decide to purchase the original article (for better quality) and/or its associated merchandise.

Another interesting phenomenon in the anime/manga industry is Dōjinshi, graphic novels drawn and self-published by amateurs with original plots but based on popular copyrighted characters. While such antics are not exactly encouraged, the owners of the characters usually choose to look the other way – and I believe there are at least 3 reasons why it makes business sense.

First, it gives fans an infinite variety of sub plots, filler arcs & alternative storylines to satisfy any need or fantasy, which can indirectly boost the popularity of the original series. Didn’t like the romantic pairings in Harry Potter? Check out the version where Harry secretly makes out with Hermione. Hated Jar Jar Binks? Go for the alternative where he gets crushed to bits by droids.

Next, it provides a source of talent by being the training ground for the next generation of artists. Several prominent manga artists started out drawing Dōjinshi. And in Europe, many professional DJs similarly got their start at pirate radio, a variety of clandestine and unlicensed radio broadcasting.

Finally, it can deliver valuable market data. Dōjinshi are sold quite openly in Japan, including at massive conventions dedicated exclusively to the medium, where the quantity and variety of materials available about a particular series are pretty good leading indicators of how “hot” the series is. Similarly in the US, media measurement outfits like BigChampagne are already mining data about P2P music downloads to determine where fans of a particular band are geographically concentrated, enabling bands to optimize their live performance schedules.

Purveyors of media in the US tend to reach instinctively for the lawsuit stick when confronted with pirates, though it is quite possible that a more nuanced approach might actually create more value for all parties involved. While it is not always possible (or indeed desirable) to embrace a pirate as a partner, their very existence suggests that perhaps there’s some customer need that’s not being fulfilled, so maybe the constructive thing to do is to craft an appropriate competitive (as opposed to legal) strategy. For when it comes to media, what kills is not piracy – it’s obscurity.

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